Why is disability pension taxed?

Answer by  cmc94 (302)

It's quite a complicated situation and Disability taxes can be taxable in some scenarios. This depends on also whether you have other sources of income at this point. The rules are also different for public and private benefit plans.

Answer by  rjeyanth (194)

Looks like the government wants to tax any kind of income any individual gets! I wonder why they can't reduce the tax themselves from the disability pension so the numbers make more sense.

Answer by  notanexpert (199)

Depends on who paid the premiums. if you have paid the premiums for your disability pension, then the benefits are not taxable at all. However if the employer or someone else has paid the premium then your benefits are taxed.

Answer by  dr84bhl (2789)

If you are disabled in your 20s they still see you as a person that would of had to pay tax if you were working normally as a healthy person. You have to put some money into your country.